Taxation system

The Taxation System in Ukraine

The taxation system in Ukraine is defined by the Tax Code of Ukraine and includes both national and local taxes and fees.

The key payments for most businesses operating under the general taxation system are as follows:

·       Value Added Tax (VAT) – 20% (exports are taxed at a 0% rate);

·       Corporate Income Tax – 18% (0% for tax-exempt enterprises);

·       Unified Social Contribution – 22% of the employees’ accrued salary (for certain categories of sole proprietors and members of farming households – 0%);

·       Military Levy – 1.5% of the employees’ accrued salary;

·       Personal Income Tax – 18% of the employees’ accrued salary;

·       Land Tax – 0.1–12% of the normative monetary valuation of the land used (set by the local government authority).

In addition to the general taxation system, Ukraine also offers a simplified taxation system, under which businesses pay a single tax:

·       3% of income, if the company pays VAT;

·       5% of income, if the company is not a VAT payer.

For further details, see the Law of Ukraine No. 1251-XII of 25.06.1991 "On the Taxation System" (in Ukrainian).